Reliance Industries has taken legal action against India's food safety regulator over restrictions preventing its Campa-branded beverages from being marketed as "energy drinks", escalating a growing dispute between major beverage companies and authorities over product labelling.
Reliance Consumer Products Ltd, the beverage arm of billionaire Mukesh Ambani's conglomerate, filed a writ petition on October 1 challenging an order issued by the Food Safety and Standards Authority of India (FSSAI) on June 30.
The regulator's order instructed manufacturers of high-caffeine beverages marketed as "energy drinks" to stop using the description.
The legal challenge adds Reliance to a growing l of major beverage companies contesting the crackdown. PepsiCo and Monster Beverage sued the regulator last week, while Red Bull, the Austrian energy drink maker, obtained a court reprieve allowing it to continue using the disputed label.
Reliance says crackdown is hurting business
According to the non-public court filing reviewed by Reuters, the regulatory action has already disrupted Reliance's distribution and sales operations.
The petition said state authorities had seized Reliance's products and that e-commerce platforms had been directed to remove the affected beverages from their listings.
"Such actions have caused and are causing substantial disruption to the Petitioner's business operations and adversely affect its market presence and commercial goodwill," Reliance Consumer Products Ltd said in the filing.
The company is seeking to have the FSSAI order quashed.
The food regulator had not immediately responded to a request for comment.
Broader food safety campaign
The dispute comes amid a wider food safety campaign across India, where authorities have intensified scrutiny of packaged food and beverages.
The campaign has included inspections and raids, the closure of facilities in some cases and new requirements for warning labels. Regulators have increasingly focused on products containing high levels of caffeine and other ingredients that could raise health concerns when consumed excessively.
The labelling dispute centres on whether certain high-caffeine beverages can legally be marketed using the "energy drink" description under India's food safety rules.
For beverage manufacturers, the issue goes beyond wording on packaging. The "energy drink" category has become an important part of the rapidly expanding Indian beverage market, making the regulator's restrictions potentially significant for companies seeking to build market share.
Campa returns to a competitive market
Reliance's challenge comes as the company attempts to establish Campa as a major player in India's highly competitive soft drinks and beverages industry.
Reliance revived the Campa brand in 2023 after acquiring the once-popular Indian beverage label. Since then, the company has used its extensive retail network and competitive pricing strategy to take on established global brands such as Coca-Cola and PepsiCo.
The energy drinks segment represents another opportunity for the conglomerate as consumer demand for functional and caffeinated beverages grows.
According to Euromonitor, retail sales of energy drinks in India are expanding at an annual rate of 12.6%, faster than growth in both the United States and China.
The regulatory restrictions could therefore pose a challenge to Reliance's efforts to expand Campa's presence in the category, particularly if products have to be withdrawn, relabelled or sold under different descriptions.
Legal battle could shape the market
The lawsuits filed by Reliance, PepsiCo and Monster, alongside Red Bull's successful request for temporary relief, could turn the dispute into a significant test of India's approach to the marketing and regulation of high-caffeine beverages.
The outcome could affect not only how companies describe their products but also how they compete in one of India's fastest-growing beverage categories.
For Reliance, the case carries additional importance as the company seeks to use Campa and its wider consumer-products business to challenge established multinational brands across India's vast and increasingly competitive consumer market.
With several major manufacturers now contesting the regulator's position in court, the judiciary may ultimately determine how India's growing energy drinks industry can market and label its products.